Business Maverick: South African President Plays Down Central Bank Mandate Change Talk

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South African President Cyril Ramaphosa played down suggestions that an amendment to the central bank’s mandate is imminent, while confirming that a possible change remains under discussion.

Any change to the mandate of the South African Reserve Bank, which focuses on curbing inflation, will take time, Ramaphosa, told reporters in Johannesburg on Monday. Last week Gwede Mantashe, the chairman of the ruling African National Congress, said the party had agreed at its national conference to change the mandate, prompting a decline in the value of the rand.

South Africa’s economy is being held back by regular power cuts and the nation has one of the world’s highest unemployment rates. The Reserve Bank has repeatedly said bolstering economic growth and job creation fall outside the scope of monetary policy.The ANC’s previous attempts to make ownership changes at the bank have stalled and it won’t be able to effect a constitutional change to its mandate on its own because it doesn’t have the requisite two-thirds majority in parliament.

The US and Australian central bank mandates among others include promoting employment, Ramaphosa said.

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The markets will rip faces off if they get it wrong.

Why destroy one thing that works?

Once again no backbone.......the alliance ( In normal English ....Coalition) must split.....

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